McDonald's Corp. is considering selling part of its stake in its Japanese unit, sources familiar close to the matter said Tuesday.
The U.S. fast food chain, which owns roughly 50 percent of McDonald's Holdings Co. (Japan), is apparently seeking to weaken its control over the Japanese unit, with potential buyers including investment funds, the sources added. The potential sale could generate 100 billion yen ($825 million).
Capitalized at around 390 billion yen, McDonald's Holdings has morphed into one of the leading fast food chains in Japan since its establishment in the country in 1971. But some industry observers believe the company is overvalued in terms of profitability.
McDonald's Holdings has been struggling to win back customers since a series of safety scandals emerged in recent years, and is closing unprofitable stores in Japan as part of restructuring.
The Japanese unit's delay in catering to diversifying customer needs has been partly blamed on McDonald's influence on management policy.
For the current business year through Dec. 31, McDonald's Holdings is expecting a group net loss of 38 billion yen.